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Presentation JBS S.A. - October 2009
 

Presentation JBS S.A. - October 2009

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    Presentation JBS S.A. - October 2009 Presentation JBS S.A. - October 2009 Presentation Transcript

    • Largest Multi-Protein Company in the World October, 2009 JBS S.A. “In God we trust, Nature we respect”
    • Our Values The Foundation Of Our Culture Planning Determination Discipline Availability Openness Simplicity 1
    • The Global Beef Industry 8 8
    • Global Market Largest beef producers Largest beef consumers Others Others United States United States 31% 31% 21% 22% Brazil EU-27 15% 15% India 4% Mexico 4% Argentina Argentina 5% EU-27 Brazil China 5% China 14% 13% 10% 10% Largest beef exporters Largest beef importers Others 25% Brazil United States 23% Others 19% 38% Russia 16% New Zealand Australia 7% 19% Canada 7% India South Korea Japan United States 4% EU-27 8% Mexico 10% 11% 8% 5% Source: USDA 2009 3
    • Meats Consumption Per capita (including beef, pork and poultry) Recommended 140 consumption 120 121 80Kg/capita 100 88 Per capita consumption 80 82 80 (kg/capita) 69 62 60 48 42 40 20 0 S d o ia 7 l ld na i ic U pe az -2 ss or hi ex EU Ru Br lo W C M ve De Source: FAO 4
    • World Population Growth and Beef Consumption (1960 – 2050) 140 10000 Population growth, a beef consumption driver. 120 8000 Consumption (million tons) 100 Population (million) 6000 80 2,0% CAGR 60 4000 40 2000 20 0 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010* 2015* 2020* 2025* 2030* 2035* 2040* 2045* 2050* Population - Developed countries Population - Developing countries Beef Consumption** Source: UN (United Nations) and USDA *UN Estimates **Beef consumption trend considering CAGR of 2.0% (from 1960 to 2008) 5
    • Per capita food consumption (Kg / Year) 180 1969/71 160 1979/81 140 1989/91 1999/01 120 2030 2050 100 80 60 40 20 0 Cereals Roots and Beans, Peas Sugar Oils Crops Meat Milk and its Tubers and Lentils and its products products Source: FAO 6
    • Our Strategy 8 8
    • OUR STRATEGY South America Fresh Products Debt for South America North America Cooked Products Working Minced Products Australia Cured Products Capital North America European Union Ready to Eat Products Asia Case Ready Australia Equity to Russia Products Finance Africa Global Brands Growth European Union Middle East Marketing Investments - High liquidity level. - Integrate the sales and - High technology investments - Debt equalized to cash - Access to raw material distribution platform to serve to produce value added generation. supply globally. efficiently, local and external products. - Strong cash position. - Leader in countries with markets, small retailers, food - Increase value added products - Access to international surplus production. processors, restaurants, and portfolio. capital markets to finance - Scale. other customers globally. - Customized products to each growth. - Leader in exports globally. - Sales force distributed over market. - Access to all meat markets. the globe. - Convenience to consumers - Development of long term - Efficiency on selling the best day to day. financing plan. - Exchange of best practices. - Efficiency cost gains. product, to the best market, - Brand and Quality recognition - Use of export platform to with the best price. and leadership. grow. - Cost reduction - Cost reduction on sales and - Marketing investments to be - Hands-on working capital opportunities. transport. present in consumer minds. management. - Margin improvements. - Margin improvements. - Margin improvements. 8
    • OUR STRATEGY 50% 12% 8% 4% Consolidated Cost Reduction, Average Financial Experienced Productivity, Risk EBITDA Structure Management Process Management Margin Optimization Foundation 9
    • JBS’ History Bertin Association* Pilgrim’s Pride* • JBS’ History has been built through Inalca JBS Hides more than 30 acquisitions in 15 years Swift Foods Co. 5 new units with appropriated capital structure and Maringá (Amambay) management Berazategui Tasman (Rio Platense) Smithfield Net Sales (in US$ billion) Colonia Caroya Beef SB Holdings Five Rivers Companies and assets acquired JV Beef Jerky Rio Branco Venado Barretos (Anglo) Cacoal 1 Tuerto 30.3 Pres. Epitácio (Bordon) Cacoal 2 Pontevedra Campo Grande (Bordon) Porto Velho (CEPA) Vilhena (Frigovira) Barra do Pedra Preta Garças Araputanga Cáceres 19.8 (Frigo Marca) (Frigosol) (Sadia) (Frigoara) Rosário Iturama (Swift ARG) (Frigosol) San Jose Andradina 12.7 (Sadia) (Swift ARG) 1.2 1.5 1.9 0.3 0.4 0.4 0.5 0.5 0.4 0.7 (1) (2) (3) 1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 R$/US$ end of the year quotation Source: JBS (1) Pro Forma JBS S.A. LTM Dec07 (2) Pro Forma JBS S.A. LTM Dec08 (3) Pro Forma JBS S.A. LTM Jun09 (including 5 new units and hides operation); Pilgrim’s Pride Sep09 (Estimated); Bertin LTM Jun09 10 * Transactions subject to customary conditions for this type of business
    • Global Production and Distribution Platform JBS’ main units and markets JBS’ main units and markets x = Legend Slaughterhouse (Beef) Slaughterhouse and Industry Distribution Center Vegetable Canning Plant Beef Canning Plant Beef Jerky Plant (Beef Snack’s) Slaughterhouse (Pork) Slaughterhouse (Lamb) x Beef and Pork Processing Plant = Wet Blue Processing Plant Headquarters Office Feed Lot Package Industry Inland Container Terminal Commercial Office 11
    • Brief Description Global Production Platform Production Units Employees Daily Slaugther Capacity JBS Brasil 25 16.993 26.950 B JBS Argentina 6 5.059 6.700 B 28.600 B JBS USA 16 24.295 48.500 P 4.500 S 8.690 B JBS Australia 10 6.995 15.000 S Inalca JBS 8 2.019 3.000 B 73.940 B Total JBS 65 55.361 48.500 P 19.500 S Additional Distribution Platform United Kingdom Russia Angola Congo Algeria Dem. Rep. of the Congo Poland (B) Beef; (P) Pork; (S) Smalls; 12
    • JBS Consolidated Net Revenue Distribution Revenue Distribution by Market 2Q09 Revenue Distribution by Market 2Q09 Italy Australia Argentina 4% 11% 2% Brazil Pork USA 16% 13% Beef USA 54% Source: JBS 13
    • Sustainability Actions Sustainability Policies Reduction of Greenhouse  JBS is aware of its responsibilities as the largest beef Company in the world and all the impacts its operations Emissions, Effluents Gases emission (GHG) generates in every region. The Company has a appropriate sustainability program in each of its units including: and W aste  Environmental Policy  Natural Resources Usage  Procedures Adopted  Social-environmental Actions 50% Effluent reutilization 50% Solid waste recycling  Informative Policy  Waste Treatment Energetic Matrix development  Community Relationship and Environmental Investments Energy Use of certified wood 25% Consume reduction  JBS is the first and only beef Company to register a CDM project at the 35% Consume reduction UNFCCC (United Nations Framework Convention on Climate Change). W ater (2m3 per head) The project is in validation phase at the designated national authority. Flora conservation Biodiversity Animal origination control Sustainability Principles Priorities • Ecological feasability • Sustainable use of materials Focus on environmentally Materials friendly materials • Ecological correctness • Partnership with organizations equally concerned • Social concern Laws Legislative compliance • Health and Quality of Life • Cultural acceptance Environmental awareness • Climate Physical activities • Waste Society Health Care  The environmental and social responsibility have always been part of JBS´s development and business growth. Formal education The Company’s extensive experience proves the importance of the reduction of environmental impacts and the improvement of its relations with the community, throughout constant investments that focus these issues. 14
    • Corporate Governance JBS has embraced a Corporate Governance model with a view to implant the best practices in the Company. The view is that the model demonstrates transparency and confidence to the public, guaranteeing the best products and services for customers, solidity for suppliers, satisfactory return for shareholders and the certainty of a better future for all JBS collaborators. Novo Mercado  JBS is part of the of BM&FBOVESPA´s Novo Mercado, is in accordance with all requirements of this market and with the obligations imposed by the current Brazilian legislation. Management and Board of Directors  Board of Directors - JBS’ Board of Directors is formed by 7 members – a president, a vice-president, 2 effective councils without specific denomination and 3 independent effective councils.  Audit Board - The Audit Board shall consist of at least 3 and at most five 5 sitting members and alternates in the same number, shareholders or not, liable to be elected or dismissed at any time of the General Meeting.  Board of Executive Officers - The members of the Company’s board of executive officers are elected by the board of directors, for three-year terms, and are eligible for reelection. Board of Directors’ Committees  The Board of Directors has approved the establishment of the following Committees: Audit, Financial, Personnel Management and Corporate Strategy, that incorporates the Sustainability matters. Publishing and Use of Information  JBS is completely in accordance with the CVM 358 instruction that revised and consolidated the requirements regarding the disclosure and use of information related to material facts and acts of publicly held companies, including the disclosure of information in the trading and acquisition of securities issued by publicly held companies. Conduct and Ethic Manual  JBS Executive Officers have developed a Conduct and Ethic Manual according to the corporate governance best practices concept. The conduct code embraces the relationship between the members of the board, shareholders, employees, suppliers and all the other stakeholders. 15
    • JBS American Depositary Receipt (JBSAY) The Bank of New York Mellon, has been selected by JBS S.A. as the depositary bank for its American depositary receipt (ADR) program. Each JBS ADR represents two common shares and they are traded on the over-the-counter market under the symbol “JBSAY“.  The new program did not represent an increase in the share capital or issuance of new shares.  This step represents an opportunity to increase the liquidity, visibility and value of JBS shares.  The Company believes that the program will help readjusting the share price to its reasonable currency level, considering that more than 80% of the Company’s revenue is in American Dollars.  In May 2009, JBS became the first Brazilian Company to have its ADRs traded under de OTCQX, a kind of “Novo Mercado” of the North American over-the-counter market. This pioneer step reflected as an increase of 331% in the average daily traded volume of JBS’ (JBSAY) stocks in New York. 100.000 85.370 80.000 ADRs’ traded volume (JBSAY) 70.770 60.000 40.000 28.800 16.300 18.800 20.000 11.000 12.900 0 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 16
    • JBS American Depositary Receipt (JBSAY) 17
    • Acquisition of Pilgrim’s Pride Corp. and Association with Bertin S.A. 8 8
    • Combined Financials JBS S.A Pilgrim's Pride Bertin S.A. Combined logo logo logo R$ million Jun 2009 FY09E (2) Jun 2009 TOTAL Results Net Sales LTM 38,680 (1) 14,778 (3) 7,224 60,683 Ebitda LTM 1,482 (1) 469 (3) 776 2,727 Ebitda Margin 3.8% 3.2% 10.7% 4.5% Gross Indebtedness 6,226 4,914 4,628 15,768 Cash and cash equivalents 2,299 496 702 3,496 Net Debt 3,928 4,418 3,926 12,272 Net Debt / Ebitda (4) 2.6 9.4 5.1 4.5 Net Debt Pro Forma / Ebitda (5) -0.6 9.4 5.1 2.7 Source: Companies (1) Pro forma figures (2) Fiscal year from October to September (3) Does not include Mexican operation (4) Does not include capital increase (5) Considering US$2.5 billion capital increase in JBS USA 19
    • Creation of the largest protein company in the world Combined company will have a leading position in the global market Combined company will have a leading position in the global market Global ranking of protein companies (US$ million)1 largest global protein 1a company 28,725 28,130 12,717 12,488 12,088 10,494 9,457 6,755 Source: Companies, Exame, Valor Econômico and CNN (Global 500) 1 Based in net revenues of 2008 and including Pilgrim’s Pride in Bertin + JBS 20
    • Leader company in the protein industry Ranking Ranking Presence Presence Installed capacity Installed capacity Industrial units Industrial units  Brazil / Argentina  Brazil: 43,400 heads/day  Brazil: 39 / Italy / Australia /  Latin America: 6,700 heads /day  Latin America: 8 U.S.A. / Uruguay /  U.S.A.: 28,600 heads/day  U.S.A.: 13 Beef Beef 1 Paraguay  Italy: 3,000 heads/day  Italy: 8  Australia: 8,690 heads/day  Australia: 10  Total: 89,790 heads/day Total: 82  U.S.A. / Mexico  U.S.A. / Mexico:  U.S.A.: 34 7.2mm birds/day  Mexico: 3 Poultry Poultry 2  Total: 7.2mm birds/day Total: 37  U.S.A.  U.S.A.: 48,500 heads/day  U.S.A.: 3 Pork Pork 3  Brazil / U.S.A. /  Brazil: 148,500 m2/day  Brazil: 12 Leather Leather 1 China  Brazil  Brazil: 1,266 ton/day  Brazil: 7 Dairy Dairy 3 21
    • Expansion of global leadership and geographic diversification Presence in over 23 countries across five continents Presence in over 23 countries across five continents Slaughterhouses and Industry Beef Distribution Centers / Commercial Offices Distribution centers X Processed products Leather Pork Dairy Ovine Vegetable fat Leather Pet products Poultry Source: Companies 22
    • Strategic Rationale Pilgrim’s Pride Acquisition Bertin S.A. Association • Opportunity to enter in the poultry • Diversification into new segments with industry as one of the largest significant presence in the dairy industry companies in the world (Net revenues of US$8.5bn in FY 2008) • Creation of the largest leather processing company • Integrated distribution of Pilgrim’s Pride is aligned with JBS direct distribution • Potential gains of scale, with estimated strategy synergies of R$ 500 million / year • Potentially higher margins • Expansion of distribution channels (Retail and Food Service) • Traditional brands • Optimization of the industrial assets • US$200m/year of potential synergies due to its geographic complementarity • Capacity of adding value through turnaround process by the implementation of better operating and managerial practices • JBS USA exports growth 23
    • Creation of the largest protein company in the world  Leader in beef processing in Brazil,  Total revenues of approx. US$30 Australia, Argentina and Italy and one billion of the leaders in the US  Global processing capacity:  Third largest pork processor in the US - Beef: 90.4 thousand heads/day  Leading company in the poultry - Pork: 48.5 thousand heads/day industry in the US and in the world - Poultry: 7.2 million birds/day  Global leader in leather tanning - Smalls: 19.5 thousand heads/day - Leather: 148,500 m2/day - Dairy: 1,266 tons/day Complementary companies Source: Companies’ estimates 24
    • Transaction summary Pilgrim’s Pride acquisition Pilgrim’s Pride acquisition Association with Bertin S.A. Association with Bertin S.A.  Firm value of US$2.8 billion  Bertin and JBS controlling shareholders will contribute to a new Holding company their  Initial acquisition by JBS S.A., through its stakes of 73% and 51%, respectively JBS USA subsidiary, of new issued shares representing 64% of Pilgrim’s Pride total  It is estimated that the respective equity capital value of Bertin and JBS should be in a proportion of approximately 40%-60%  Estimated synergies of US$200 million/year  Estimated synergies of R$ 500 million/year  Customary precedent conditions, including: - Approval by the competent antitrust  Customary precedent conditions, including: authority - Approval by the competent antitrust - Final approval of the Reorganization authority Plan in the Bankruptcy Court (Chapter - Due Diligence 11 of the United States Bankruptcy Code) JBS is in an advanced negotiation for a capital increase of US$2.5 billion in JBS USA, resulting in a maximum stake of 26.3% after the capitalization 25
    • Ownership structure post transactions Ownership structures before transactions Ownership structure post transactions Market Batista including Family BNDES Batista Bertin 51.4% 48.6% Family Family JBS S.A. Controlling Market including Holding BNDES Bertin ~60% * ~40% * BNDESPAR Family 73.1% 26.9% JBS S.A. Investor Bertin 100% ≥73.7% Other JBS U.S.A. Bertin subsidiaries Includes AUS ≤26.3% Pilgrim’s Float 64% Old shareholders shareholders 35% 65% 36% Pilgrim’s Pilgrim’s Pride Pride * Controlling shareholders’ estimates 26
    • Pilgrim’s Pride overview Profile Profile Recent Events Recent Events  One of the largest producers of chicken with  Dec. 2006: Acquisition of Gold Kist for US$ 1.1 bn extremely well-known brands in this industry  May 2008: Public Primary Offering of 7.5 million  Plants in the US, Mexico and Porto Rico shares at US$24/share (total of US$180m), aiming  Vertically integrated company to reduce leverage  Chicken production in 2008:  Nov. 2008: Rating downgraded by S&P – 3.8 million tons  Dec. 2008: Company files for Chapter 11  Slaughterhouses: (Bankruptcy protection) – 33 in the US, 3 in Mexico and 1 in Puerto Rico - Company was delisted from NYSE and started  Employees: ~ 41 thousand to be traded over-the-counter  Distribution centers:  Feb. 2009: Shares reach their lowest historical – 6 in the US, 18 in Mexico and 1 in Puerto Rico price of US$0.15/share Net revenues (US$ million) Net revenues (US$ million) EBITDA (US$ million) and margin (%) EBITDA (US$ million) and margin (%) 5.5% 2.8% 3.2% 8,525 7,499 7,095* 414 143 225 * 5,153 -9.6% -821 FY06 FY07 FY08 FY09E FY06 FY07 FY08 FY09E Source: 10K, 10Q and Pilgrim’s Pride Plan of Reorganization Pilgrim’s Pride fiscal year is from October to September * Does not include Mexico operations 27
    • Footprint expansion in North America Pilgrim’s Pride Acquisition will strengthen JBS’ presence in North America Pilgrim’s Pride Acquisition will strengthen JBS’ presence in North America WA MT ND MN ME SD WI VT OR ID WY MI NH NY IA MA NE D CTRI D D OH PA NV IL IN NJ UT D CO M D KS MO WV D DE CA KY VA TN OK NC AR AZ NM D D MS D D SC AL GA D TX LA D D D FL D D MEXICO D D DD D D Subtitle D D D D D D D JBS USA production units DD D D JBS USA distribution center D D Pilgrim’s Pride production units 28 D Pilgrim’s Pride distribution center
    • Bertin Overview Description Description Net Sales Breakdown (R$ million) Net Sales Breakdown (R$ million) Established in 1977, Bertin has 38 2008 production units and 28 thousand employees 7% - Present in the beef, dairy, leather and pet 12% product segments with several nationwide well-known brands, e.g. Bertin, Vigor, Leco and Danúbio 13% - Units in Brazil, Uruguay, Paraguay and China 68% - Exports to more than 110 countries Production Capacity: - 16,450 head/day (2009E) Beef Leather Dairy Others - 21,400 hides/day (2009E) Net Sales (R$ million) Net Sales (R$ million) EBITDA (R$ million) and margin (%) EBITDA (R$ million) and margin (%) 13.2% 7,224 10.5% 10.7% 6,626 5,188 687 694 776 2007 2008 LTM 2007 2008 LTM Jun09 Jun09 Source: Bertin 29
    • South America production base The combined production units places JBS at the forefront in South America The combined production units places JBS at the forefront in South America PA AC RO MT BA GO MG Brazil Paraguay MS RJ PR SP SC SF CO ER Uruguay BA Argentina Combined companies 30
    • Final remarks of the Transactions • Complementary activities and consolidation of the global leadership in the protein industry will be strengthened through the association between JBS S.A. and Bertin S.A. • Entry in the poultry industry through one of the leading companies in the US industry • Acceleration of direct distribution strategy through the IPO of JBS USA • Appropriate capital structure • Significant opportunity of adding value through synergy gains • Proven track record in acquisitions, integration and restructuring of companies • Resuming growth through acquisitions and partnerships 31
    • 2st Quarter 2009 Results 8 8
    • JBS Consolidated Results Net Revenue (R$ million) Net Revenue (R$ million) EBITDA and EBITDA Margin (R$ million) EBITDA and EBITDA Margin (R$ million) 6.1% 4.1% 4.1% 2.8% 2.3% 9,633.2 470.5 9,267.9 9,255.0 7,771.5 384.0 7,129.5 295.0 265.9 211.5 9.0% 24.0% -3.8% -0.1% 59.5% -43.5% -20.4% 81.5% 2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 3Q08 4Q08 1Q09 2Q09 Source: JBS EBITDA Margin (%) 33
    • Performance by Business Units JBS USA (Beef) Including Australia JBS USA (Pork) INALCA JBS JBS MERCOSUL Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales (US$ million) (US$ million) (US$ million) (US$ million) (€ million) (€ million) (R$ million) (R$ million) 1.8 2.9 1.7 1.6 1.4 1.4 2.8 2.8 2.8 682 162 2.6 620 600 143 144 144 526 554 140 2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 3Q08 4Q08 1Q09 2T09 2Q08 3Q08 4Q08 1Q09 2T09 2Q08 3Q08 4Q08 1Q09 2T09 EBITDA (US$ mi) EBITDA (US$ mi) EBITDA (€ mi) EBITDA (€ mi) EBITDA (R$ mi) EBITDA (US$ mi) EBITDA (US$ mi) EBITDA (R$ mi) EBITDA margin EBITDA margin EBITDA margin EBITDA margin EBITDA margin EBITDA margin EBITDA margin EBITDA margin 7.6% 5.1% 5.6% 5.6% 3.6% 5.3% 4.9% 4.3% 4.5% 4.7% 5.1% 3.9% 4.6% 4.3% 2.2% 2.2% 3.2% 4.1% 3.7% 1.4% 155.6 52.1 8.3 104.6 7.6 6.6 6.6 132.9 5.6 60.4 59.7 25.6 24.7 102.2 82.6 19.9 58,2 199,1 53.5 7.5 2Q08 3Q08 4Q08 1Q09 2T09 2Q08 3Q08 4Q08 1Q09 2T09 2Q08 3Q08 4Q08 1Q09 2T09 2Q08 3Q08 4Q08 1Q09 2T09 Source JBS 34 EBITDA Margin (%)
    • Debt • Considering the seasonality with the production increase in a high moment of high demand for beef, the Company maintained its leverage on the same levels of the preview quarter. • The Company has improved its net debt in comparison to the 1Q09. The short term debt decreased 47% in 1Q09 to 39% in 2Q09 against the total debt. Net Debt / EBITDA Pro Forma per Quarter Debt Profile Net Debt = R$ 3,928MM = 2.6 100% EBITDA pro forma = R$ 1,482 MM 80% 2.8 2.6 * 50% 53% 2.3 2.5 61% 2.0 60% 40% 50% 47% 20% 39% 0% 2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 1Q09 2Q09 Short term Long term Source: JBS Net Debt/ EBITDA EBITDA pro-forma * LTM including Smithfield Beef pro-forma. 35
    • Cash and Availabilities R$ Million 06/30/09 03/31/09 Var.% Net indebtedness 3,927.7 4,173.8 -5.9% Cash and cash equivalents 2,298.7 1,798.0 27.8% Current 2,411.9 2,780.0 -13.2% Long term 3,814.5 3,191.8 19.5% Gross indebtedness 6,226.4 5,971.8 4.3% • Besides the cash and cash equivalents noted above, the US and Australia subsidiaries of the Company has availabilities of approximately US$ 560 million under their existing credit facilities that provide additional liquidity. • Therefore the Company’s total liquidity including the availabilities under its credit facilities: R$ Million 06/30/09 Additional availability 1,092.9 Cash and cash equivalents 2,298.7 Total Liquidity 3,391.6 36
    • JBS Consolidated Exports Distribution Revenue Distribution by Market 1Q09 Revenue Distribution by Market 2Q09 Exports Exports 22% 26% Domestic Market Domestic 78% Market 74% Exports Distribution 1Q09 Exports Distribution 2Q09 JBS Exports2Q 09 US$ 1,169.1 Million Taiwan Taiwan O thers O thers Japan 2% Japan 2% 14% China 14% 18% Middle East 16% 4% 4% E.U. E.U. 16% Hong Kong Canada 15% 5% 4% China South Korea 5% USA Africa and USA Hong Kong South Korea Canada 6% Russia Mexico Russia Mexico 11% Middle East 9% 5% 6% 5% 7% 7% 8% 9% 8% JBS Exports 1Q09: US$ 904.1 Million JBS Exports 2Q09: US$ 1,169.1 Million Source: JBS 37
    • Investor Relations www.jbs.com.br/ir ir@jbs.com.br +55 11 3144 4055 Thank you!
    • Disclaimer The forward-looking statements presented herein are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management, and on information currently available to us. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future operating results, financial condition, strategies, market share and values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict. Forward-looking statements also include information concerning our possible or assumed future operating results, as well as statements preceded by, followed by, or including the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions. 39